Singapore's revised CPF interest rates from 1 January to 31 March 2024

Savings in the Special and MediSave Account will earn an interest of 4.08% in Q1 2024, up from 4.04% in the preceding quarter.

Singapore's Central Provident Fund Board (CPFB) has announced the revised CPF interest rates from 1 January 2024 to 31 March 2024.

As the Special and MediSave Account (SMA) pegged rate exceeds the floor rate of 4%, savings in the SMA will earn 4.08% in the first quarter of 2024 — up from 4.04% in the preceding quarter. This follows the increase in the 12-month average yield of 10-year Singapore Government Securities (10YSGS), to which the SMA interest rate is pegged.

Similarly, the Retirement Account (RA) interest rate peg will be aligned to that of the SMA and computed quarterly instead of annually from 1 January 2024. Hence, savings in the RA will likewise earn 4.08% in the first quarter of 2024 as part of the Government’s review of the CPF interest rate pegs. This change will allow the RA interest rate to be more "responsive to the prevailing interest rate environment", as the CPFB deems.

The Ordinary Account (OA) interest rate will remain unchanged at 2.5% for the same period, as the pegged OA rate remains below the floor rate of 2.5%.

CPF members below 55 years old

• can earn an extra 1% interest on the first S$60,000 of their combined CPF balances.

CPF members aged 55 and above

• can earn an extra 2% interest on the first S$30,000 of their combined CPF balances, and an extra 1% on the next S$30,000.

The CPFB noted that there are no changes to the SMA and RA floor rate of 4% until 31 December 2024, as announced previously.

As part of the Government’s efforts to enhance the retirement savings for CPF members, CPF members will earn extra interest on their CPF savings. For members below 55 years old, they will earn extra 1% interest on the first S$60,000 of their combined balances (capped at S$20,000 for OA). For members aged 55 and above, the Government pays an extra 2% interest on the first S$30,000 of their combined balances (capped at S$20,000 for OA), and an extra 1% on the next S$30,000.

The extra interest received on the OA balances will go into the member’s Special Account (SA) or RA. If a member is above 55 years old and participates in the CPF LIFE scheme, the extra interest will still be earned on his or her combined CPF balances, which includes the savings used for CPF LIFE.

Interest rate for CPF Ordinary Account and HDB concessionary interest rate

While the OA interest is maintained at 2.5% per annum, the concessionary interest rate for HDB housing loans, which is pegged at 0.1% above the OA interest rate, will remain correspondingly unchanged at 2.6% per annum from 1 January 2024 to 31 March 2024.

Basic Healthcare Sum for 2024

The Basic Healthcare Sum (BHS) is the estimated savings required for basic subsidised healthcare needs in old age. The sum is adjusted yearly for members below age 65 to keep pace with the growth in MediSave use. Once members reach age 65, it will remain fixed for the rest of their lives.

Starting 1 January 2024,

1. For members below 65 years old, their BHS will be raised from S$68,500 to S$71,500.
2. For members who turn 65 years old in 2024, their BHS will be fixed at S$71,500 and will not change thereafter.

For members aged 66 years and above in 2024, their cohort BHS has already been fixed and will remain unchanged.

Members can make contributions to the MediSave Account (MA) up to the BHS. MediSave contributions in excess of a member’s BHS will be automatically transferred to his or her other CPF accounts.

As shared by the Board, members who have less than the BHS are not required to top up their MA and will still be able to withdraw from their MA to pay for approved medical expenses.

Lead image / 123rf.com